Jefferies reduced its rating on Caribou Coffee (NASDAQ: CBOU) from Buy to Hold and reiterated its previous $16 price target.

Jefferies said, "[W]e believe JAB is a good strategic match for CBOU's global retail footprint and premium positioning in single-serve through its licensing agreement with Green Mountain [GMCR, $40.32, NC]. CBOU will continue to operate independently out of Minneapolis under current mgmt, and we do not anticipate any competing bids. … We think the valuation fairly balances CBOU's long term opportunity in both retail coffeehouses and commercial growth with the current risks and uncertainties regarding single serve and the competitive environment."